2012 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Revenue by Acquisition

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

36.8%

$5,021,103

9.4%

*Insufficient Data

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$1,844,836 $7,000,000

Average

1.5x 2.2x

High

High

Low

$159,427

Low

1.1x

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.2%

6.4%

5.8%

High Low

17.9%

1.0% 9.5%

10 Largest Accounts

8.9%

8.3%

High Low

19.5%

5.3%

Average

+25% Profit

+25% Growth

“Other” Group Revenue**(% from source) Life

16.3% 15.1% 22.3%

18.5% 20.0% 25.3% 8.9% 0.8% 1.2% -0.1% 25.5%

19.6% 20.0% 13.8%

Disability

Dental & Vision

Retirement/Pension

9.9% 3.9% 1.6% 3.9%

6.3%

Worksite/Voluntary/Supplement

10.7%

Long-Term Care

1.1%

Employee Benefits TPA

16.5% 11.9%

2012 Best Practices Study

All Other

27.1%

**Excludes Group Medical

Agencies with Revenues Over $25,000,000

125